Globalization Oui et Non?

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GlobalizationOui et Non?
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First, Lets Define It

• It is the inexorable integration of markets,
  nation-states and technologies to a degree never
  witnessed before in a way that is enabling
  individuals, corporations and nation-states to
  reach around the world farther, faster, deeper
  and cheaper than ever before, and in a way that
  is enabling the world to reach INTO individuals,
  corporations and nation-states farther, faster,
  deeper and cheaper than ever before. This
  process of globalization is also producing a
  powerful backlash from those brutalized or left
  behind by the new system. Thomas L. Friedman,
  The Lexis and the Olive Tree, 1999

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A Little Background

• World has grown small, flatter, interdependent
• Romans
• Explorers
• Colonialism

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20th Century

• Political alliances and wars
• WW I WW II
• Post WW II Rebuilding Japan and
• Europe Marshall Plan
• Cold War We Won! Now What?
• EU expansion, other trade agreements
• Improved technology

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Necessary Elements

• Reduction of trade barriers, tariffs,
  comparative advantage )
• Transparency Rule of law, corruption controls
• Free press/media
• Capital markets stocks bonds
• Democratization China?
• Infrastructure

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Fall Out - Positive

• Capitalisms inevitable cycle of innovation and
  creation
• Micro benefits entrepreneurship, markets,
  products and specialization increase
• Macro benefits increased trade, opportunities,
  living standards, national income, GDP
• Foreign direct investment outside corporate
  investment
• India, South Korea
• Peace?

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• Two nations who traffic with each other
  become reciprocally dependent for if one has an
  interest in buying, the other has an interest in
  selling thus their union is founded on their
  mutual necessities.
• Montesquieu, Spirit of the Laws, 1748

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The Golden Arches Theory of Conflict Prevention

• According to Friedman, countries the trade
  together dont make war on each other. Or,
  countries that have McDonalds dont make war on
  each other.

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Fall Out - Negative

• Capitalisms inevitable cycle of innovation,
  creation and destruction
• Environmental China, hello?
• Jobs/wages lower living standards
• Rich vs. poor multinational corporations and
  wealth concentration
• Race to the bottom
• Trade agreements that hurt more than help
• World-wide recession not just local anymore

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The Big Question

• Are international organizations like the UN,
  WTO, IMF, the World Court, NAFTA,
  non-governmental organizations equipped to police
  globalizations discontents?
• Sovereignty infringement, neo- colonialism
  (Shell in Nigeria)

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Backlash 1 Jihad vs. McWorld

• Benjamin Barber argues that globalization has
  not encouraged cooperation
• Lebanonization of the world
• Threatens democracy Middle East, China
• Disintegration internal conflict/violence
  resulting from economic upheaval
• Decentralization along ethnic, religious or
  linguistic lines

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Backlash 2Cultural Homogenizing

• Joseph Nye argues not a serious problem
• Japan its not happening
• They hate us, but not our blue jeans
• Not all trends adopted capital punishment
• Cultural diversity actually encouraged

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Backlash 3Individuals

• Nye claims locals benefit, not just big
  corporations
• Persian Gulf local governments
• Across the pond Wales and Ireland
• This is Bob. How can I help you?
• 250,000 Indians are now answering the phone

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• Office space in central Bangalore, India is
  dominated by multinational corporations

Photo and map courtesy of bbc.com
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The World Is Flat

• Or so says Thomas Friedman in 2005.
• Ten events have sped up globalization
• Fall of Berlin Wall - 11/9/89
• Netscape goes public 8/9/95
• Better software for work
• Open-sourcing free software movement
• China joins WTO 12/11/2001
• Russia joins WTO 8/10/2012
• Better supply chains Walmart
• Better supply chains UPS
• Search engines take off
• Digital, mobile, virtual

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What About Your Country?

• What positive impacts is globalization creating
  in your country?
• What negative impacts is globalization creating
  in your country?
• What is your country doing about globalization
  and its discontents?
• Make a generalized list of globalizations costs
  and benefits.

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Globalizations costs

• Erosion of state sovereignty
• Pressure to conform to global norms
• Increased autonomy, succession movements
• Increased vulnerability to other state actors
• Need to be more aware of whats going on outside
  your borders
• Crime, drugs, disease, terrorism spread across
  national borders more easily
• Exploitation of labor and capital in poorer
  nations by mncs
• Increased pressure to compete globally
• Pollution, crime, prostitution, urbanization,
  societal upheaval
• Women still dont have access to capital,
  mobility, power
• Cultural homogenization Americanization of
  culture, norms, consumption

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Globalizations benefits

• Interdependence leads to increased need to
  cooperate
• Reduction in trade barriers, increased investment
• Rapid economic growth
• More consumer choice
• More access to information, technology, capital
• Development of global institutions to cope with
  globalization leads to increased cooperation
• Spread of democratic norms and human rights
• Increased ability to spread political messages
  across borders
• Empowerment of non-state actors (ngos)
• New avenues for political access, redress of
  grievances
• Evolving sense of global citizenship, breaking
  down of barriers between nations, groups,
  individuals